Home rent gap narrows in London

Monday 1 April 2002 23:00 BST

IT will soon be as cheap to rent a four-bedroom house in London as to buy one, according to upmarket mortgage broker Savills Private Finance. The difference between buying and renting - spread over the lifespan of the average mortgage - has halved in only 12 months as rents continue to tumble throughout the capital while the price of property increases, says Savills.

Buying an average four-bedroom house would currently save £103,100 compared with renting the same property over 25 years. The saving was about £200,000 a year ago.

Savills reckons that if the trend continues, renting will be as cheap as buying in 15 months' time. However, the figures do not take into account the rise in value of property, which benefits only owners.